Changes in Hungarian legislation regarding real estates Term: January-September 2018

Real estate 2018-10-03

The year 2018 has brought many changes in the legislation of Hungary regarding real estates. There were many aspects that motivated the change in legislation, the most prominent of which were the social goals of the lawmakers like the state’s right of pre-emption, the increase of the security of real estate transactions, and the reform of the territorial administration for quicker and more efficient processes.

The extension of the State’s right of pre-emption (right of first refusal)

From December 2017, the scope of the state’s right of pre-emption has been expanded.

The amendment of Act 64 of 2001. on the protection of cultural heritage grants a primary right of pre-emption for the state, if the area or the real estate can be protected as cultural heritage, and such protection is declared by an amendment regulation.

The amendment of the Act 77 of 2011. on the world heritage, which came into force in December 2017 has expanded the scope of the state’s right of pre-emption to real estates on UNESCO world heritage locations, which was explained by the achievement of the goals set out in the world heritage treaty. Such world heritage locations include the banks of the Danube, the Castle District of Buda, Andrássy street and many rural area locations, such as the Old Village of Hollókő.

The UNESCO world heritage locations are listed in annex 1. of the Government regulation nr. 455/2017. (XII. 27.).

For any real estates that are subject to the amended legislation, the state registrates its right of pre-emption to the land registration. The authority designated by the Government contacts the real estate authority for the registration. Habitations (flats, residential properties) are exempted from the state’s right of pre-emption.

The security of real estate transactions

Act 78 of 2017. on the activity of attorneys-at-law changed the rules of countersigning, increased the level of security of documents, and made the land registration processes based on such documents more secure.

§ For the sake of increasing the secuirty of business transactions, the attorney-at-law is obliged to verify the documents of the clients and their proxies through the data provision system (in Hungarian abbreviated as “JÜB”), and is obliged to keep a record of such verification.

§ The attorney at law is also obliged to verify all documents about the rights regarding real estates.

§ If the contract was signed in a foreign country, it is possible to verify the signatures by consular superlegalisation or by a notary public.

Changes regarding the land-register and fees

The amendment of Act 141 of 1997 on the land-register which came into force on the 1st January 2018 erased the possibility of filing the application at government offices, thus making the filing only possible at the land-registration offices on paper.

According to the amendment of the Act 93 of 1990 on fees which came into force on 1st January 201. the value of the flat sold within 3 years prior to- or within 1 year after the sale and purchase, may be deducted from the base of calculation of the fee, provided that the acquirer is a natural person.

Changes of Act 102 of 2011 on the regulated real-estate investment companies

The amendment nr. T/625. which passed on the 20th July 2018, regulates the companies registered on the stock exchange (real-estate investment companies) the activity of which covers acquisition, operation and development of real estate acquired by using the funds of investors.

The main purpose of the amendment was to limit the scope of activities of such companies to the above mentioned activity, securing the payment of the income for the investors. The development and organizing of the projects regarding the construction of buildings is considered an exception from the regulation as long as it is not paired with actual construction activities, which can only be performed by a separate, „outsider” building contractor. The amendment makes it possible for the project companies under its scope to perform activities regarding non-residential properties as well.

Let us know if you have any question in regards of the various real estate transactions we deal with via clicking here!

Olvassa el szakmai blogunk bejegyzéseit

Szakmai blogunkban gyakran előforduló jogi eseteinkbe engedünk bepillantást

Megnézem az összes bejegyzést

Divorce and a Family Business: How Does the Division of Marital Assets Affect Business Ownership?

Családjogi 2026-10-13

Divorce can raise significant questions not only in personal life but also regarding the future of a business. This is particularly true when one spouse owns a company or when the spouses have built a business together during their marriage. In such cases, an important question arises: if the company is registered in only one spouse’s name, can the other spouse claim a share of its value?

The answer depends on several factors, including when and how the business interest was acquired, the period during which the spouses’ marital community of property existed, and whether joint marital assets were used to finance the business.

Tovább olvasom

Which Legal Arrangement Allows the Acquisition of Real Estate at the Most Favorable Transfer Tax Cost?

Real estate 2026-10-02

When transferring a high-value property, the key question is not only under which legal title the property can be acquired, but also what tax or duty consequences arise from the chosen legal arrangement. This is particularly relevant where the acquirer does not fall within the scope of persons exempt from inheritance or gift duty. This raises an important question: which legal arrangement – inheritance, gift, maintenance agreement, inheritance contract or trust – may result in the lowest duty burden?

Notice: This article does not constitute legal advisory services, and does not necessarily match the interpretation of the applicable laws by the authorities. This article is for general information only.

Tovább olvasom

Our Expert Partner for the Investigation of IT Incidents and Digital Devices: Biztonság Akadémia (Security Academy)

IT 2026-09-18

In today’s modern legal environment, the documented and professional examination of digital evidence, as well as the protection of devices and user accounts, has become increasingly important in legal disputes and proceedings.

Our firm’s cooperating partner in this field is Biztonság Akadémia Kft.

The professional expertise of our partner is provided by Tamás Durmics, an independent IT security expert and ethical hacker with more than 25 years of experience in information technology and security. His work focuses on documented and independent examination methodologies, as well as on presenting technical findings in a clear and comprehensible manner suitable for use in legal proceedings.

Tovább olvasom

Inheritance Without a Will: Who Gets the Property If There Is No Written Expression of Intent?

Internet 2026-08-28

One of the most common situations giving rise to the greatest number of conflicts during probate proceedings is when the deceased dies without making a testamentary disposition. In such cases, the fate of the assets and debts is determined by the statutory order of succession under the Hungarian Civil Code. Although the rules are clear, a significant proportion of clients are not aware of the more important changes introduced by the Civil Code currently in force, particularly with regard to the rights of the surviving spouse or the extent of the compulsory share.

Tovább olvasom

Personal Income Tax Exemptions and Tax Allowances: What Rules Apply under the Personal Income Tax Act, and What Are the Biggest New Developments of Recent Years?

2026-07-20

Under the rules currently in force, the general rate of personal income tax (PIT) is 15 per cent of the tax base. In everyday language, many people lump the different concepts together and simply call every case in which no tax is deducted from their gross salary a “tax exemption.” From a legal-dogmatic perspective, however, classical tax exemption must be sharply distinguished from tax allowances. While tax-exempt revenues do not form part of the tax base in the first place, the tax system also recognises different rules that result in a reduction of the private individual’s tax: these are tax allowances reducing the consolidated tax base.

A particular characteristic of personal income tax is that these tax allowances and tax exemptions may be claimed only against income falling within the consolidated tax base and the tax thereon, and exclusively up to that amount.

Tovább olvasom